Economic PapersPub Date : 2023-03-06DOI: 10.1111/1759-3441.12379
Rohan Kanti Khan, Sushobhan Mahata, Ranjanendra Narayan Nag
{"title":"Pandemic Crisis, Contact Intensity and Gender Disparity in a Developing Economy*","authors":"Rohan Kanti Khan, Sushobhan Mahata, Ranjanendra Narayan Nag","doi":"10.1111/1759-3441.12379","DOIUrl":"https://doi.org/10.1111/1759-3441.12379","url":null,"abstract":"<p>The paper attempts to analyse the grotesque dimensions of gender disparity of lockdown as a policy response to the pandemic crisis. In doing so, we develop a multi-sectoral distortion-ridden general equilibrium model which applies to small open developing economies. Lockdown results in supply-chain disruptions (SCDs), physical restrictions on labour gathering, adverse demand shock and an escalation of demand for the high-skilled capital-intensive product. Not only factor intensity ranking but also contact intensity of sectors has several dimensions. These dimensions include inter alia female labour force participation, the burden of unpaid domestic chores on women and gender wage disparity with unemployment as well.</p>","PeriodicalId":45208,"journal":{"name":"Economic Papers","volume":"42 1","pages":"30-53"},"PeriodicalIF":0.9,"publicationDate":"2023-03-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50123067","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic PapersPub Date : 2023-01-19DOI: 10.1111/1759-3441.12378
Megha Chhabra, Arun Kumar Giri, Arya Kumar
{"title":"What Shapes Economic Growth in BRICS? Exploring the Role of Institutional Quality and Trade Openness","authors":"Megha Chhabra, Arun Kumar Giri, Arya Kumar","doi":"10.1111/1759-3441.12378","DOIUrl":"10.1111/1759-3441.12378","url":null,"abstract":"<p>Prior research has identified outward-oriented policies as a far superior approach to achieving economic growth. Whilst trade openness determines economic growth in the short run, institutional quality is critical to long-term viability. However, the direct and indirect effects of institutions have been understudied, particularly for the Brazil, Russia, India, China and South Africa. This study addresses this issue by estimating long-run and short-run elasticities using the system GMM and pooled mean group models and identifying its country-specific impact using the fully modified ordinary least square model. According to the findings, trade and institutions are only short-run complements of economic growth. In the long run, however, the lack of good governance limits the positive impact of trade openness.</p>","PeriodicalId":45208,"journal":{"name":"Economic Papers","volume":"42 4","pages":"347-365"},"PeriodicalIF":0.9,"publicationDate":"2023-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124761002","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic PapersPub Date : 2023-01-16DOI: 10.1111/1759-3441.12377
Ritika Jain, Rajnish Kumar
{"title":"Effect of COVID-19 Lockdown on the Profitability of Firms in India*","authors":"Ritika Jain, Rajnish Kumar","doi":"10.1111/1759-3441.12377","DOIUrl":"https://doi.org/10.1111/1759-3441.12377","url":null,"abstract":"<p>We examine the effect of COVID-19-induced lockdown on the profitability of listed firms in India. We use quarterly income statement of 4168 listed firms for the period between April–June 2020 quarter and April–June 2022 quarter and compare their financial data with previous quarters (2015–2019). Using a difference-in-difference estimation framework and various profitability measures, we find that the COVID-19 lockdown has reduced profits by around 15 per cent for listed firms in India. Our results are robust to various robustness tests and alternate specifications. We find evidence of firms losing revenues more than expenses, thus leading to decline in profits. The main effect is conditioned by firm-specific factors. Specifically, firms that are smaller, older, unlisted and that do not belong to any group witnessed larger decline in profitability due to lockdown. Additionally, the effect of lockdown is more pronounced in areas that had lower mobility and higher COVID-19 spread. These results underscore the importance of institutional factors and pre-existing firm characteristics in conditioning the impact of lockdown on firm profitability.</p>","PeriodicalId":45208,"journal":{"name":"Economic Papers","volume":"42 1","pages":"54-71"},"PeriodicalIF":0.9,"publicationDate":"2023-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50134560","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic PapersPub Date : 2022-12-15DOI: 10.1111/1759-3441.12376
Leslie A. Martin
{"title":"Driving on Sunbeams: Interactions Between Price Incentives for Electric Vehicles, Residential Solar Photovoltaics and Household Battery Systems*","authors":"Leslie A. Martin","doi":"10.1111/1759-3441.12376","DOIUrl":"10.1111/1759-3441.12376","url":null,"abstract":"<p>I discuss how electric vehicles (EVs) link transportation externalities to the regulations that govern our electricity markets. Specifically, I contrast the consequences of the incentives faced by joint EV and residential PV adopters under a system of monthly net metering to those under a system of instantaneous metering with feed-in tariffs and behind-the-meter own consumption. I also discuss how, even within Australia, households under new solar PV contracts and early adopters under legacy contracts face very different private costs of operating EVs, which have environmental and congestion implications. I briefly discuss how these incentives interact with the profitability and environmental benefit of household battery systems. Finally, I comment on how these short-term incentives are likely to evolve in the longer run transition to a much cleaner grid and warn about the potential negative distributional impacts of using purchase subsidies to accelerate the adoption of these technologies.</p>","PeriodicalId":45208,"journal":{"name":"Economic Papers","volume":"41 4","pages":"369-384"},"PeriodicalIF":0.9,"publicationDate":"2022-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1759-3441.12376","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116344154","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic PapersPub Date : 2022-12-14DOI: 10.1111/1759-3441.12375
Eduardo Pol
{"title":"Organising Thinking about Disinflation Policy*","authors":"Eduardo Pol","doi":"10.1111/1759-3441.12375","DOIUrl":"https://doi.org/10.1111/1759-3441.12375","url":null,"abstract":"<p>This paper offers a plain model to organise thinking about the disinflation policy. It exploits the insight that monetary and fiscal policy are intertwined. The model links inflationary expectations, monetary policy and fiscal policy, and contemplates a disinflation policy consisting of two plans, not necessarily connected: a monetary plan and a fiscal plan. The central question examined is which type of policy generates a lower policy interest rate – a monetary plan without fiscal cooperation or a monetary plan with fiscal austerity? The economic logic articulated by the model generates the following answer: the equilibrium policy rate set by the central bank can always be brought down by reducing the budget deficit. This qualitatively unambiguous prediction may be dependent on silent omissions, which are briefly discussed at the end of the paper.</p>","PeriodicalId":45208,"journal":{"name":"Economic Papers","volume":"42 1","pages":"92-106"},"PeriodicalIF":0.9,"publicationDate":"2022-12-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1759-3441.12375","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50132713","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic PapersPub Date : 2022-12-10DOI: 10.1111/1759-3441.12374
Tim Nelson, Joel Gilmore, Tahlia Nolan
{"title":"Be Wary of Paying Wounded Bulls – Capacity Markets in Australia's National Electricity Market*","authors":"Tim Nelson, Joel Gilmore, Tahlia Nolan","doi":"10.1111/1759-3441.12374","DOIUrl":"https://doi.org/10.1111/1759-3441.12374","url":null,"abstract":"<p>Australia's Energy Security Board is currently considering whether to pivot the east-coast Australian National Electricity Market from an energy-only market to include some form of capacity remuneration. This discussion is occurring during an unprecedented energy crisis where the wholesale market was suspended following a 275% increase in underlying wholesale energy prices. This article unpacks the root causes of the current energy crisis and how a traditional capacity market would have been ineffective in addressing it. We find that a traditional capacity market may provide windfall gains to wounded bull coal generators and be counterproductive in driving new investment in dispatchable technologies. Our recommendation is that policy-makers should focus on utilising existing regulatory tools and a capacity reserve to insure against the unanticipated failures of ageing coal plants.</p>","PeriodicalId":45208,"journal":{"name":"Economic Papers","volume":"42 1","pages":"72-91"},"PeriodicalIF":0.9,"publicationDate":"2022-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50127542","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic PapersPub Date : 2022-12-01DOI: 10.1111/1759-3441.12372
Russell Smyth, Joaquin Vespignani
{"title":"Increasing Australian Lithium Production to Meet Electric Vehicles and Net Zero Global Targets: A Decarbonisation Tax Discount?*","authors":"Russell Smyth, Joaquin Vespignani","doi":"10.1111/1759-3441.12372","DOIUrl":"10.1111/1759-3441.12372","url":null,"abstract":"<p>Current commitments with net zero 2050 require that more than two billion electric vehicles (EVs) be produced globally by 2035. Australia produces more than 55% of the global lithium in the world. We argue that Australia's most significant contribution to realising net zero 2050 could be to increase lithium production 10-20-fold by 2035. A similar case could equally be made for increasing other critical minerals. This would also contribute to securing Australia's energy and national security. To realise these benefits current investment in lithium is much lower than the production of lithium batteries used in EVs requires, reflecting suboptimal tax rates. We conclude by proposing that a decarbonisation tax discount for critical minerals is needed.</p>","PeriodicalId":45208,"journal":{"name":"Economic Papers","volume":"41 4","pages":"385-389"},"PeriodicalIF":0.9,"publicationDate":"2022-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127735715","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic PapersPub Date : 2022-11-17DOI: 10.1111/1759-3441.12370
Bhushan Praveen Jangam, Hari Venkatesh
{"title":"Global Value Chains and Exchange Rate Disconnect*","authors":"Bhushan Praveen Jangam, Hari Venkatesh","doi":"10.1111/1759-3441.12370","DOIUrl":"10.1111/1759-3441.12370","url":null,"abstract":"<p>This study examines the effect of global value chains (GVCs) on the association between gross exports and the exchange rate. To do so, we quantify the composition of the GVCs using output-related measures for sixty-one countries from 2007 to 2020. This approach is better than the existing measures in capturing all the linkages of GVCs. Second, we analyse the importance of GVCs on the link between gross exports and the exchange rate using an econometric technique – the generalised method of moments. Our results show that GVC participation disconnects the exchange rate elasticity of exports. The empirical findings are robust and consistent across the sectors and income groups. Therefore, it is vital for policy-makers to consider the implications of GVCs while devising any policy related to exports.</p>","PeriodicalId":45208,"journal":{"name":"Economic Papers","volume":"41 4","pages":"347-359"},"PeriodicalIF":0.9,"publicationDate":"2022-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124100822","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic PapersPub Date : 2022-11-15DOI: 10.1111/1759-3441.12371
Peter Martin
{"title":"Weak Emission Standards and Australia's Low Takeup of Electric Vehicles","authors":"Peter Martin","doi":"10.1111/1759-3441.12371","DOIUrl":"10.1111/1759-3441.12371","url":null,"abstract":"<p>Australia is unusual among developed countries both in lacking fleet-wide vehicle carbon dioxide emission standards and in having a very low takeup of all-electric vehicles. This paper outlines how fleet-wide vehicle carbon dioxide emission standards operate and identifies mechanisms by which their absence might lead to a low takeup of electric vehicles in countries such as Australia. Although hard to verify one of those mechanisms in Australia (higher prices charged for all-electric vehicles), it is easy to verify the unusually low number of models of all-electric models made available for sale. The paper also outlines Australia's slow 15-year journey towards standards, pointing to the possible role of political machinations and political caution in delaying their introduction. It identifies one group of employees with much to lose from a rapid uptake of electric vehicles—motor mechanics.</p>","PeriodicalId":45208,"journal":{"name":"Economic Papers","volume":"41 4","pages":"390-395"},"PeriodicalIF":0.9,"publicationDate":"2022-11-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1759-3441.12371","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131304214","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic PapersPub Date : 2022-11-13DOI: 10.1111/1759-3441.12369
Clara Hathorne, Robert Breunig
{"title":"Occupational Mobility in the ALife Data: How Reliable are Occupational Patterns from Administrative Australian Tax Records?*","authors":"Clara Hathorne, Robert Breunig","doi":"10.1111/1759-3441.12369","DOIUrl":"https://doi.org/10.1111/1759-3441.12369","url":null,"abstract":"<p>The purpose of this paper is to compare the distribution of occupation and rates of occupational mobility in the ATO Longitudinal Information Files (ALife) and the Household, Income and Labour Dynamics in Australia (HILDA) datasets. As tax is not occupation dependent, occupation data from tax records may not be reliable. We find that occupational mobility in the ALife data is less than half that in the nationally representative HILDA data. In contrast, the distribution of occupation and its relationship with most key socio-economic characteristics appear relatively similar across the two datasets. However, occupation evolves differently over time in the two datasets and there are some differences between the sexes.</p>","PeriodicalId":45208,"journal":{"name":"Economic Papers","volume":"41 4","pages":"297-324"},"PeriodicalIF":0.9,"publicationDate":"2022-11-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1759-3441.12369","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"137828356","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}